Source: There are several other tools available to small businesses that allow for the exchange of value of goods or services aside from tranditional cash. Samuel K. Burlum provides inisght to how barter can be helpful in uplifting a local business community.
The collateral damage of big-box retail invasion into Main Street USA can been seen from coast to coast. All one has to do is get off any major interstate highway exit and head into a historic small middle American town, and you will find a number of empty store fronts, empty parking lots, and “for sale” signs in the windows of buildings. If you travel past the Main Street, usually on the outskirts of town in between another adjacent town, you will find a big box retailer. These stores which might employ a few local people to fulfill the jobs necessary in running a large retailer operation still send its profits out of the community, back to corporate headquarters.
As Main Street businesses struggle with the new normal, it searches for other ways to stay competitive and in keeping those spending dollars in the local community. Many local business owners also live in the same town in which their business services, so it is by no surprise their passion for local pride and wanting to preserve a local economic system. One way of preserving local value creation is with barter.
Since most large big box retailers are only interested in cash, credit, or debit transactions; barter is a unique way for local businesses to capture local and regional clientele, both direct to consumer, and business-to-business in helping them meet their needs. Barter for a local or small business can benefit a community because it’s a system meant to encourage localized trade in one geographic location. It keeps the economic value close to home, direct to those who will use those products and services.
Barter allows for an individual and/or a business to realize real value for their time. With barter, no one ever has to discount their services or products to obtain new clients. Barter allows for your business to gain exposure to new audiences, without the need to spend outrageous budgets on advertising. Being a part of trading network allows you to target specific needs within the network and offer your services to those niche clients. Barter also allows for a business to strengthen relationships with other bartering businesses, keeping both small businesses strong.
Bartering provides flexibility for a small business and/or an individual, such as the ability to get the things they need while conserving hard cash for other business expenditures outside the community. Barter is still a financial contract, so both parties involved in the mutual exchange need to adhere to the agreement. To do otherwise would be no different from not paying for a service or product. Make sure when you do barter, all details of the barter are clearly communicated.
Barter is a simple system that devoid the complex inner workings of a controlled monetary system, allowing for the sense of freedom to conduct commerce between two parties without experiencing the restriction of value on their goods and/or services. When using barter, both sides usually find economic advantages, such as wasting less to get the job done, and provide more of a concentrated effort toward meeting the need of the service, rather than trying to extract more from the other side.
With barter, there is an absence of common measure of value, meaning that there usually is a void in understanding the true value in one good for another as a set standard; for instance, how many eggs must be exchanged for a gallon of milk? Also the inability to divide up a parcel of a commodity presents a challenge. Unlike money, goods cannot be divided or subdivided. This makes for unique situations when trading a larger good for a number of smaller goods. A platform such as Badger Barter, where barter is composed of a trade credit, eliminates this sort of issue.
Barter, without some sort of third-party credit system, makes for other logistical challenges such as deferred payment and transportation an issue, since in a direct barter, everything is an instant exchange. However, in the setting of a tight-knit community where people trust one another, individuals and small businesses can make agreements with each other on time of delivery, and deadlines in which a barter exchange must be realized. Barter keeps a community and its merchants close, and most of all, the community can enjoy the complete benefit of having the true wealth of the exchange stay within the confines of the borders of the community.